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How much federal taxes should I have withheld from a $50,000 cash prize. Also, how much state tax should I withhold? I live in Upstate NY.
My e-mail address is Eagles4579@aol.com
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That would be correct for 2013 if you have no other income and are single with no dependents taking the standard deduction. All the amounts increase slightly for 2014 due to inflation adjustments in the standard deduction, dependency exemptions, and the bracket amounts. The rates are the same.Reply 197 weeks ago
The first $10,000 of your income not taxed due to the standard deduction and the personal exemption. If you have other income, this would be taxed on top of the other income, at higher rates. Since you are married, the tables I gave you do not apply, they are tables for singles. The rate tables for married filing jointly can be seen here www.forbes.com/sites/kellyphillipserb/2013/10/31/irs-announces-2014-tax-brackets-standard-deduction-amounts-and-more/ So the amount of taxes on this prize would be less than $6,000 assuming no other income.Reply 196 weeks ago